Oman Presses On With Key Energy Projects Despite Revenue Slump

Oman has tied up over $4bn in finance for two key energy projects. Oil output and upstream activity remains at or near record levels. But 70% fall in revenues has left the country’s ratings just above ‘junk’ status.

Oman state refiner Orpic has concluded $3.8bn in project finance for its $6.5bn Liwa Plastics project to be built at Sohar, while Oman Power and Water Procurement Company (OPWP) has tied up over $300mn in financing for desalination plants at Barka and Sohar on Oman’s northern coast (see p16).

Orpic CEO Musab al-Mahruqi flagged up Liwa as Oman’s largest ever project finance.

It comes not a moment too soon: recent two-notch downgrades for Oman from both Moody’s and S&P (MEES, 4 March) will almost certainly raise the cost of future fundraising from state-owned firms such as Orpic.


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